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Global Apparel Brands focus on Supply Chain optimization to enhance brand value.

News   •   Apr 09, 2018 10:00 CEST

Source: Internet Retailing

In an increasingly competitive marketplace, heavily influenced by a ‘fast food’ consumer mentality, the textile and apparel industry must turn to innovative methods for resolving brand value issues.

According to an article by Supply Chain Dive and report from Brand Finance’s annual rating, Nike experienced a 12% drop in their overall brand value, which has a total of $28 billion, today. Despite the drop in brand value, the organization remains the number one most valuable apparel brand, globally.

In order to close the gap of competitiveness, brands vying for that number one spot as the top global apparel brand – Adidas, H&M and Zara – are too working heavily with supply chain optimization.

“Nike is investing heavily in automation to help reduce lead times for its orders from 60 days to just 10 by redesigning its logistics network and near-shoring more facilities in, for example, Latin America. In addition, the company plans to install at least 1,200 new automated machines at its Asian suppliers' factories,” reports Supply Chain Dive. 

H&M, too, has been bulking up on their supply chain management to push forward their top-line. 

"H&M is investing in analytics and intelligence to improve its supply chain. The company also is broadening its use of technology to include cloud computing and the Internet of Things (IoT). H&M is increasing visibility, employing RFID to track where clothes are and move more quickly to address shortages or oversupply". (Hochfelder 2018).

This report confirms market trends in supply chain management, moreover the consensus of global brands to adopt emerging SCM technology.

Automation, of course, has been a major focus of supply chain innovators. But, automation isn't the only technological capability available that can currently address to streamline/minimize otherwise resource-consuming tasks.

IoT and Warehouse/Inventory Management solutions are bridging the gap between the physical and the cloud, changing the way logistics teams achieve supply chain transparency. P2P, SRM, and Strategic Sourcing solutions are aiding procurement teams to gather and utilize supplier data for better purchasing and sourcing decisions.

Acknowledging the importance of supply chain management is a first step in realizing it’s overall potential for value-added to a company’s top-line and brand. These industry leaders will serve as a north star for the rest of the market to follow suit. 

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